Demand for loans by Greek SMEs and large corporations is expected to increase further, while demand by households is expected to remain unchanged in the first quarter of 2023, the Bank of Greece (BoG) said on Tuesday.
Credit standards for loans to non-financial corporations (NFCs) remained unchanged in the fourth quarter of 2022, compared with the third quarter of 2022, in line with the expectations expressed in the previous quarterly survey round, the Bank of Greece said on Tuesday. Moreover, banks expect that credit standards will also remain unchanged during the first quarter of 2023, the central bank said in a quarterly report on credit conditions in the country.
More specifically, the overall terms and conditions for loans to NFCs remained unchanged compared with the third quarter of 2022. During the fourth quarter of 2022, the overall demand for loans and especially for long-term loans increased, both from small and medium-sized enterprises (SMEs) as well as from large enterprises, driven mainly by financing needs for fixed investment and working capital. During the next quarter, the overall demand for loans by both SMEs and large corporations is expected to increase further.
In the fourth quarter of 2022, the ratio of rejected applications for loans to NFCs remained unchanged compared with the previous quarter.
Credit standards as well as the terms and conditions for loans to households remained unchanged compared with the third quarter of 2022, in line with the expectations expressed in the previous quarterly survey round.
Demand for consumer credit and housing loans remained almost unchanged. During the next quarter, the overall demand for housing and consumer loans is also expected to remain almost unchanged.
Banks expect that, during the first quarter of 2023, credit standards for housing and consumer loans will remain unchanged.
The ratio of rejected applications for loans to households remained almost unchanged during the fourth quarter of 2022 compared with the previous quarter.
SOURCE; ANA-MPA
